Italy’s Lottomatica Group has agreed to acquire Spanish gaming operator Cirsa Enterprises in an all-share merger valued at approximately €2.8 billion, a move set to create one of the largest publicly listed gambling companies in the world.
Under the binding agreement announced this week, Cirsa shareholders will receive 0.668 newly issued Lottomatica shares for every share they currently hold. Once the deal closes, existing Lottomatica shareholders will own roughly 67.5% of the combined business, while Cirsa’s investors will hold the remaining 32.5%, according to iGaming Business.
The transaction is structured as a cross-border statutory merger, with Cirsa being absorbed into Lottomatica rather than continuing as a separate legal entity. The combined company will keep the Lottomatica name and be headquartered in Rome, while Cirsa retains a secondary base in Barcelona. Both firms’ existing stock listings in Italy and Spain are expected to remain in place after completion.
Blackstone stays in, becomes largest shareholder
Perhaps the most notable element of the deal is what happens to Blackstone, the U.S. private equity giant that has controlled Cirsa since 2018 through holding company LHMC Midco. Rather than cashing out, Blackstone is rolling its stake into the enlarged group and is expected to emerge as the single largest shareholder in the combined company, with a position of around 24%. The firm will also be granted two of the thirteen seats on the new board.
Notably, the deal comes without any fresh acquisition financing from Blackstone — it’s a straightforward share exchange rather than a cash-funded buyout. Before the merger takes effect, Cirsa also plans to pay out an extraordinary €262 million dividend to its existing shareholders.
Scale of the new entity
Together, the two companies are projected to generate combined income exceeding €4.4 billion, with pro-forma adjusted EBITDA of roughly €2 billion for the twelve months to June 2026. That would make the merged group the second-largest listed gaming and sports betting operator globally by most measures, with leading positions in both the Italian and Spanish markets and a stronger platform for expansion into South America.
Lottomatica has posted strong recent results in its own right, reporting €856 million in adjusted EBITDA for 2025 — up 21% year-on-year — alongside adjusted net profit of €369 million, a 45% increase.
Executives on both sides framed the tie-up as a natural fit. Blackstone’s Global Co-Chief Investment Officer, who also sits as Vice Chairman of Cirsa’s board, said the merger brings together two complementary businesses with shared values and strong brands, positioning the combined group to benefit from greater scale and broader geographic diversification.
The companies expect to realise around €115 million in annual pre-tax cost synergies from operational efficiencies and reduced interest costs, with the full benefit expected by the third year after completion.
The merger remains subject to shareholder approval and regulatory clearance, and is expected to become effective in the second quarter of 2027.